Municipality of Hagonoy Bulacan vs.

Simeon Dumdum
Doctrines: Be that as it may, a difference lies between suability and liability. Where the suability of the state isconceded and by which liability is ascertained judicially, the state is at liberty to determine for itself whether to satisfy the judgment or not. Facts: Respondent, doing business as KD Surplus was contacted by petitioner Ople. Respondent hadentered into an agreement with petitioner municipality through Ople for the delivery of motor vehicles,which supposedly were needed to carry out certain developmental undertakings in the municipality.However, despite having made several deliveries, Ople allegedly did not heed respondents claim for payment. Petitioners filed a Motion to Dismiss claiming that the action was unenforceable under thestatute of frauds. Petitioners also filed a Motion to Dissolve and/or Discharge the Writ of Preliminary Attachment Already Issued, invoking among others, immunity of the state from suit. Issue:Whether as a municipal corporation, the Municipality of Hagonoy is immune from suit, and that itsproperties are by law exempt from execution and garnishment Held: The general rule spelled out in Section 3, Article XVI of the Constitution is that the state and itspolitical subdivisions may not be sued without their consent. Otherwise put, they are open to suit butonly when they consent to it. Consent is implied when the government enters into a business contract,as it then descends to the level of the other contracting party; or it may be embodied in a general or special law such as that found in Book I, Title I, Chapter 2, Section 22 of the Local Government Codeof 1991, which vests local government units with certain corporate powers one of them is the power to sue and be sued. Be that as it may, a difference lies between suability and liability. As held in City of Caloocan v. Allarde, where the suability of the state is conceded and by which liability is ascertained judicially, thestate is at liberty to determine for itself whether to satisfy the judgment or not. Execution may notissue upon such judgment, because statutes waiving non-suability do not authorize the seizure of property to satisfy judgments recovered from the action. These statutes only convey an implicationthat the legislature will recognize such judgment as final and make provisions for its full satisfaction.Thus, where consent to be sued is given by general or special law, the implication thereof is limited only to the resultant verdict on the action before execution of the judgment.The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects. The writ of attachment in this case would only prove to be useless and unnecessary under the premises, sincethe property of the municipality may not, in the event that respondents claim is validated, besubjected to writs of execution and garnishment unless, of course, there has been a corresponding appropriation provided by law

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